The Effect of Employee Benefit Liabilities, Sales Growth, Capital Intensity, and Earning Management on Tax Avoidance

Abstract

Tax avoidance is a strategy that is common in tax management. As part of management strategy, tax avoidance is important to know for a manager. The purpose of this research is to examine the level of tax avoidance of the manufacturing industry in Indonesia and the role of employee benefit liabilities, sales growth, capital intensity, and earnings management in effecting this. This study uses purposive sampling and 78 manufacturing companies listed on Indonesia Stock Exchange (IDX) from 2016 to 2019 that were selected as research samples and obtained a final sample of 312 firm-years observation. The result of panel data regression using a random effect model finds strong evidence that employee benefit liabilities have a negative effect on tax avoidance while sales growth, capital intensity, and earning management has a positive effect on tax avoidance.Keywords: Employee benefit liabilities, sales growth, capital intensity, earning management, tax avoidance. Abstrak Penghindaran pajak adalah salah satu strategi yang biasa digunakan dalam manajemen pajak. Sebagai bagian dari manajemen strategi, maka penghindaran pajak penting diketahui oleh seorang manajer. Tujuan dari penelitian ini adalah untuk menguji tingkat penghindaran pajak industri manufaktur di Indonesia dan peran kewajiban imbalan kerja, pertumbuhan penjualan, intensitas modal, dan manajemen laba dalam mempengaruhi hal tersebut. Penelitian ini menggunakan purposive sampling dan 78 perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) dari tahun 2016 hingga 2019, yang dipilih sebagai sampel penelitian dan diperoleh sampel akhir sebanyak 312 data panel perusahaan. Hasil regresi data panel dengan menggunakan model random effect menemukan bukti kuat bahwa kewajiban imbalan kerja berpengaruh negatif terhadap penghindaran pajak sedangkan pertumbuhan penjualan, intensitas modal, dan manajemen laba berpengaruh positif terhadap penghindaran pajak.Kata Kunci: Imbalan pasca kerja, pertumbuhan penjualan, besaran modal, manajemen laba, penghindaran pajak.

Factors impact in tax avoidance practices before and during the COVID-19 pandemic

“…If sales growth or sales growth increases, it shows that there is an increase in the company's operating capacity(Budiman & Setiyono in (Oktamawati, 2017). Meanwhile, in the research of Marfiana & Putra (2021); Mahanani et al (2017) revealed a different thing, namely that there was no influence between sales growth on tax avoidance. Therefore, in this study to test the following hypotheses:…”

“…Previous research on sales growth in tax avoidance found inconsistencies in the results obtained. Research conducted by Marfiana & Putra (2021), states that the higher the company's sales growth, the higher the practice of tax avoidance. This research is in line with research by Nugraha & Mulyani (2019); Hamilah & Situmorang (2021); Faradisty et al (2019) states that sales growth has an effect on tax avoidance.…”

Pengaruh Corporate Social Responsibility Terhadap Tax Avoidance Perusahaan Yang Terdaftar Di Bursa Efek Indonesia

“…Net cash from operating activities terhadap tax avoidance oleh Susilowati et al (2020), dan Marfiana & Putra (2021) menemukan hasil significant negatif. Kemudian penelitian dari Wardani & Nugrahanto (2022) menemukan hasil significant positif.…”

“…Hal inilah membuat adanya keinginan untuk meminimalkan beban pajak yang dibayarkan sehingga kompensasi atas kinerja yang didapat manajemen perusahaan tidak mengurangi pertumbuhan laba perusahaan. Hasil ini didukung oleh Marfiana & Putra (2021) Hasil pengujian goodness of fit model menunjukkan Adjusted R-squared untuk variabel dependen menggunakan proxy current ETR adalah 0,070344. Hal ini menunjukkan bahwa variabel independen pada penelitian hanya dapat mengungkapkan 7,03% dari variabel dependen, dengan sisanya 92,97% diungkapkan oleh variabel yang tidak ada dalam penelitian ini.…”

The Effect of Capital Intensity, Leverage, and Institutional Ownership on Tax Avoidance With Profitability as a Moderation Variable

“…According to (Hidayati et, al., 2021), fixed assets in a company can reduce the tax burden that must be paid due to a depreciation of fixed assets. Based on previous research by (Anindyka et, al., 2018;Aryatama & Raharja, 2021;Darsani & Sukartha, 2021;Dharma & Noviari, 2017;Dwiyanti & Jati, 2019;Marfiana et,al., 2021;Noor & Sari, 2021) proves the intensity variable capital positively affects the tax avoidance variable. This problem is in accordance with agency theory.…”